As in other countries in the world, the stock market in VietNam has been playing one of the most important parts in capital mobilization channel for business. The IPO markets in recent years showed that with weak economic recovery a lot of firms didn’t successfully complete an IPO. Some corporations performing IPO but the results were not so effective, they couldn’t sell its shares and the other was able to sell only more than half.
This research, with a focus VietNam IPO from 2008 to 2013, is supposed to examining the aftermarket performance of initial public offerings and explores the under-pricing of IPOs in Vietnam. The study uses a comprehensive sample of IPO from Vietnam stock exchanges. Specifically, we examine the following factors：offering size, age of the firm, size of the firm, industry composition, hot and cold composition that influence the level of under-pricing. Our findings suggest that there exist a significant under-pricing on both the Hanoi Stock Exchange and Hochiminh Stock Exchange. Additionally, it is hoped that some suggestions can be given in order to improve the IPO market in VietNam
